Tim Farron
Main Page: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)Department Debates - View all Tim Farron's debates with the HM Treasury
Family Farming in Northern Ireland
Tim Farron Excerpts(2 days, 2 hours ago)
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Carla Lockhart
The hon. and learned Member is right; the policy is stifling growth. As I have said before, farmers want to advance and grow, and they want to spend money.
Tim Farron (Westmorland and Lonsdale) (LD)
The hon. Lady is making an important point. To follow up on the previous intervention, I wonder whether she has noticed in Northern Ireland, as I have in Cumbria, that farmers are holding money back. If they need a drystone wall fixing, they are not paying for that. If they need a new tractor, they are not investing in it. If they need to upgrade a barn for animal welfare purposes, they are not doing it. The policy is damaging not only farms but the rural communities that service those farms, and, as the hon. and learned Member for North Antrim (Jim Allister) said, constricting growth.
Carla Lockhart
I agree with the hon. Member. I need to give way to the leader of my party at this point.
The Exchequer Secretary to the Treasury (Dan Tomlinson)
It is a pleasure to serve under your chairmanship, Mr Efford, for my first time speaking from this position in this fantastic Westminster Hall. I congratulate the hon. Member for Upper Bann (Carla Lockhart) on securing the debate, and she spoke with passion and with personal insight from her own family farming background. She spoke clearly about the impact on jobs and employment and on communal life in Northern Ireland, about how essential farmers are to so many of the villages, towns and communities in Northern Ireland and across the whole country, and of course about the importance of farming to family life.
The decision to reform agricultural property relief and business property relief from next April was not one the Government took lightly. Over the past 12 months, the Government have listened to the concerns of the hon. Member for Upper Bann, of other hon. Members and of external organisations. The Government and I recognise the strength of feeling on this topic in Northern Ireland and elsewhere across the country. But having listened and discussed the question with a range of stakeholders, the Government believe that the approach set out at the Budget last year is the appropriate one.
I recognise and deeply respect the contribution that small businesses and farms make to the economy in Northern Ireland and across the United Kingdom, but I and the Government also recognise the need to restore economic stability, fix our public finances and contribute to funding our public services. As well as all this, we need to make sure we raise taxes in a way that is fair for all of us.
Tim Farron
Will the Minister take a look at the University of Cumbria report that shows that upland farmers in all four corners of the United Kingdom will, at the end of the transition, will be earning only on average 55% of the national minimum wage—barely half the living wage? Those are the same farms, often worth £2 million or £3 million on paper, that may have to spend £20,000 a year to pay off the tax. How does he think that is fair and how does it raise money for the Government coffers in a sustainable way?
Dan Tomlinson
I will happily look at any report any Member recommends I read, so I encourage the hon. Gentleman to send it my way.
Since we took office, the Government have taken a range of decisions to seek to restore economic stability and raise revenue to help support our public services, because it was vital to attempt to sort out the mess we inherited, so that we can invest again in the future. The decision to reform APR and BPR was one of the decisions that enabled us to do that.
Under the current system, the 100% relief on business and agricultural assets is heavily skewed towards the very wealthiest estates. According to data from His Majesty’s Revenue and Customs for 2021-22, almost half of agricultural property relief across the UK—40%—was claimed by just 7% of the estates that made claims. That is £219 million in tax foregone from just over 100 estates.
It is a similar picture for business property relief, which is linked and is treated in the same way under the reforms, with more than 50% of business property relief claimed by just 4% of estates. That is £558 million in tax foregone from just 158 estates. That contributes to the very largest estates paying much lower tax rates than smaller estates and everyday people up and down the country.